Statement Stuffer
What Is a Statement Stuffer?
A statement stuffer is a type of sales brochure commonly utilized in direct marketing efforts. In particular, it is associated with financial service providers, for example, banks and brokerage companies, who frequently incorporate these notices along with their month to month account statements and other correspondence.
The purpose of statement stuffers is to "[up-sell](/strategically pitch)" account holders on related services, for example, credit cards, lines of credit, or extra brokerage services.
How Statement Stuffers Work
Normally, statement stuffers incorporate an outline of financial services that are connected with providers with which the customer as of now has a relationship. For example, a banking customer who holds a checking and savings account could receive a statement stuffer advertising personal lines of credit or retirement savings accounts. Albeit the institution as of now offers types of assistance to that customer, the promotional offers might start from their partner institutions.
Statement stuffers are well known among financial firms since they offer a helpful and reasonable form of marketing to customers who as of now utilize their fundamental services. In recent years, in any case, digital variants of these notices — casually known as "e-stuffers" — have additionally become common.
Electronic statement stuffers, or "e-stuffers," are turning out to be more famous in the age of paperless banking.
Statement stuffers permit financial institutions to improve profitability through strategically pitching, or empowering customers to pursue a more extensive cross-part of products. Generally, financial institutions will look to get new customers by offering particularly alluring products, frequently contending on the basis of price. These purported "loss leaders" might be generally unprofitable for the company initially.
Be that as it may, the company's goal is to increase profit margins by selling more profitable products or services to those customers later on. Subsequently, statement stuffers are used to advance these higher-edge ancillary products and services. Infrequently, statement stuffers might be utilized for non-commercial purposes, like informing the customers of a change to the terms and conditions of their accounts.
Illustration of a Statement Stuffer
Assuming you have a bank account, you may currently be know about the statement stuffers that accompany your month to month account statement. Most banks additionally offer other financial types of assistance, for example, credit cards, mortgages, or car loans, and they frequently elevate these services to their banking clients.
This is likewise true in the insurance industry, where a single company could offer several unique types of policies. On the off chance that you have accident protection, your statements might be joined by advancements for property holder's or alternately leaseholders' insurance policies by a similar insurer. Numerous life insurance providers additionally offer other insurance products, for example, disability income insurance or long-term care insurance. The rundown is progressively growing to incorporate investment services too, for example, annuity products.
Why Companies Use Statement Stuffers
Financial firms look to be engaged with whatever number parts of their customers' financial lives as could be expected under the circumstances. Customers who pay for various services through a similar provider might be less inclined to switch to another provider, due to the cost and complexity of doing as such. Thus, a key goal for financial firms is to boost their share of wallet, the total dollar amount that a customer spends on their company's products and services.
In like manner, banks and other financial services companies frequently grow their product offerings into insurance, stock brokerage services, retirement planning, and different areas. By advertising these services to their customers through statement stuffers and different forms of marketing, banks can make customer loyalty by which the client relies on a single institution for numerous financial activities.
On the off chance that fruitful, this strategy of product diversification and direct marketing can make it harder or more costly for the client to switch providers, consequently making a solid and predictable customer base.
Features
- Statement stuffers are ads delivered to customers, along with their account statements.
- Statement stuffers encourage customers to pursue a more extensive scope of products and services.
- Statement stuffers frequently connect with ancillary services which the source tries to "up-sell" to existing customers.
- Eventually, statement stuffers assist financial firms with further developing customer retention by expanding the costs associated with switching to another provider.
